Just sharing my own continued experiences and observations while trying to learn about investing money wisely.
My primary goal and interest is more about realistically trying to preserve the value of money I have rather than unrealistically hoping to make astronomical gains that could make up for decades of lost investment opportunities.
But I am also fully aware that to live life, means to be prepared to take and accept the risk factor. A risk factor that means, you could lose even more money by choosing the wrong alternative form of investment .There are no 100%, foolproof techniques out there for anything in life.
In fact risk still exists even when you do nothing, like just leaving your hard earned savings in the bank. You risk losing its original value either by depreciation, negative interest rates or inflation (partly due to the excessive printing of money is now taking place) The word ‘fiat’ currency is becoming an accurate description of present currency valuation.
It’s not only to do with investing in these very unstable times where we seem to be on the verge of another major Economic and Stock Market Crash but it’s also to do with limited trading knowledge, skills and experience, combined with trying to maintain some form of emotional & psychological stability. Even If I could make a few smart moves and get lucky in the short term, the dark forces of greed and fear can infect my thinking, decisions making and actions in the future.
When I really start thinking about this aspect in itself and observe some of the most successful investors and financial advisors one strange thing keeps popping up, in the back of my mind. Despite the fact that they have acquired so much wealth (wealth that they could never really consume in a lifetime) some are still panicking and obsessed with wanting to gain even more. Instead of experiencing that promised stress free, worry free lifestyle of financial freedom and security they seem to be just as fearful as the very first day that they started out on this journey.
It reminds me of a proverb in the bible;
“The sleep of the labourer is pleasant-
whether he eats little or much-
but the wealth of the rich will not allow him to sleep”
Ecclesiastes 5:12 The Net Bible
The fact is that the rich and those who have worked hard and saved their money risk experiencing the greatest losses if they fail to act wisely and intelligently now as opposed to the poor who have nothing to lose anyway.
I don’t want to generalise or stereo type successful investors. When I look at Warren Buffet I get a completely different impression and vibe about his world and the effect it has on character. Warren Buffet is merely,
……doing what he loves
and it is keeping him alive and kicking even in his old age. I honestly believe in his case that the ‘act’ of actively examining, choosing and investing in solid companies means far more to him than his actual net worth in zero,s. Losing the ability to invest would be a greater loss to him than his actual attained investment gains and assets.
The skill is greater than the catch.
If he lost everything today within six months to a year he would be back on his financial feet.
If I return the attention to myself I feel that I am actually enjoying the learning process more than overly worrying about it (….at the moment anyway). I believe I would gain a certain amount of satisfaction in developing a new skill set and being able to apply it with at least some success. But when I sense increased anxiety and exaggerated pressure to make an impulsive decision then I tend to back off. Maybe I just missed out on another one time opportunity again but at my age anyway I don’t believe the panic reaction, stress and anxiety it creates is worth it. My general inner peace and tranquility (that has taken years to attain and still struggle with daily) is far more important to me than the gain or loss of profits. Strangely enough another new opportunity arises tomorrow or that same last chance offer from yesterday is still miraculously available today.
My only hope and main concern is that while taking this journey I will not lose myself, my values and principles. I don’t want this journey to become an all consuming obsession as if my whole self worth is going to depend on my financial net worth, because if so, it will be a very long, bumpy, roller coaster ride.A ride that will translate itself at times with me having the greatest fear and greed when I am experiencing those financial highs, fully aware that just like the Stock Market itself…
what goes up must come down.